European bank grants Morocco €300 million loan to finance state companies

 

The European Bank for Reconstruction and Development (EBRD) on Tuesday granted a €300 million ($354 million) loan to Morocco to help finance three state companies to withstand the COVID-19 impact.

The loan will be provided to Morocco’s National Airports Office, National Highways Company, and National Office for Electricity and Drinking Water, according to a joint statement by the EBRD and Moroccan Ministry of Economy and Finance.

This loan will help the three public enterprises to counter the impact of COVID-19 pandemic, through the mobilization of funding for their cash flow needs, the statement said.

The EBRD support also includes technical assistance to help modernize and consolidate good governance and increase the quality of public services by the three companies, it added.

The loan deal was initialed on Tuesday by Moroccan Minister of Economy and Finance Mohamed Benchaaboun and Vice-President of the EBRD Alain Pilloux during a video conference.

On Monday, the European Investment Bank (EIB) announced the release of 100 million euros (119 million U.S. dollars) to Morocco to help deal with the COVID-19 pandemic.